But he said there was no specific reason behind the local dollar’s fall, with more US stimulus largely priced in.

AFR
AFR

US stimulus is seen as a positive for the Aussie, given its tendency to depress the greenback.

The Federal Open Market Committee on Wednesday is expected to announce it will begin buying $US45 billion a month in treasuries to keep benchmark interest rates at around zero until 2015.

This would see the Fed’s so-called Operation Twist program replaced with a fourth round of stimulus, or QE4.

The Fed has already released $US2.3 trillion into the financial system between 2008 to 2011 in two rounds of quantitative easing that have helped support the Australian dollar at levels many strategists judge to be above its fair value.